Tajikistan: the somoni looses 10.5% of its value against the dollar

The national Tajik currency, the somoni, has lost 10.5% of its value against the dollar since the beginning of this year, according to the National Bank of Tajikistan (NBT).

In January, the somoni reportedly lost 15.4% of its value against the dollar.

In February, the situation improved to a certain extent and the somoni exchange rate somewhat strengthened its position, and since February depreciation has amounted to 10.2%.

Over the next four months the somoni has reportedly lost only 0.3% of its value against the dollar.

Meanwhile, Tajikistan’s Finance Ministry expects the national currency to continue to slide against the dollar over the coming three years.

Finance Ministry forecasts, drawn up as part of budget planning, see the somoni slipping from its current 7.9 to the dollar to 9.6 in 2017, 10.4 in 2018 and 11.2 in 2019. Inflation for those years is seen at 7%.

“This is just a forecast. There will be no devaluation. The rate depends on many factor, mainly external ones, and indicators of the gold and currency reserves”, a source at the NBT said.

“We believe that there will be no such external pressure as in 2014, since we see a certain degree of progress in the Russian economy, despite the negative prognosis”, the NBT source said.

The source noted that the forecast was just the preliminary one and it could be adjusted during elaboration of the law on the national budget for 2017.

The draft law on the national budget for 2017 is expected to be submitted for consideration to the government on September 20. (Asia-Plus/Business World Magazine)